9911796707
TMI Blog1999 (8) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of such railway parts includes forging, machining, boring, turning, threading and grinding etc. Some of these processes are undertaken through various job workers to whom the raw material i.e. steel and pig iron are sent for such processes. 3. The appellants are having the permission under Rule 57F of the Central Excise Rules, 1944 for sending the inputs to their job workers after taking Modvat credit on their own. It is not disputed that in the course of manufacturing the railway parts, waste and scrap arises in the appellants factory or in the job workers factories. It however appears that the appellants did not clear the waste and scrap from their factory, so arisen, on payment of duty or did not bring the waste and scrap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat no estimate of such invisible loss has at all been made by the appellants either in the reply to the show cause notice or at the appeals stage. Learned Advocate submits that demand of duty on invisible losses will not be justifiable. The adjudicating authority on its own should have given a reasonable benefit on such invisible losses rather than confirming the entire amount of duty, submits the learned Advocate. 6. He also points out that the demand of duty is barred by time in that the show cause notice was issued well beyond the period of 6 months. The department was fully aware that the appellant had been sending the inputs to their job workers under the provisions of Rule 57F(2) after taking permission from the concerned departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ap so arrived at this stage. He therefore prays for dismissing the same. 9. We have carefully considered the pleas advanced from both sides. We do not agree with the submissions of the learned Advocate Sh. J.S. Agarwal that waste and scrap arisen in the process manufacture of railway parts by the various processes mentioned above can be treated as junk and scum. Waste and scrap, as a matter of fact, is mentioned in the tariff and by our experience we can say that it is treated as marketable commodity not only in India but also internationally. There is a regular sale and purchase of waste and scrap of iron and steel in the market. We therefore do not accept the contention of the learned Advocate that the waste and scrap arisen in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be dismissed. We order accordingly. 12. Before parting with this order, we may observe that the learned Advocate Sh. J.S. Agarwal s reliance on the Tribunal s judgment in the case of Laxman and Sylvania reported in 1998 (103) E.L.T. 504 which inturn relies on Apex Court judgment in the M/s. Multimetals Ltd. v. ACCE reported in 1992 (57) E.L.T. 209 is not relevant to the controversy before us. The controversy in the said case was whether the Modvat credit of duty will be available to the inputs contained in the finished goods as contended by the revenue or it will be available to the inputs used in the manufacture of the finished goods as contended by the assessees. Such a controversy is not before us. In other words Modvat credit of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
